Employment and Labour Relations Court Suspends 1.5%  Housing Levy

Order Halting Implementation of 1.5% Housing Levy Extended

The Employment and Labour Relations Court has suspended the Government’s suspends directive to employers to implement 1.5% housing levy pending hearing of a case filed by Consumers Federation (Cofek).

On Wednesday, Justice Maureen Onyango said the suspension would allow the consolidation of the current case by the Consumers Federation of Kenya (Cofek) with another filed by the Central Organisation of Trade Unions (Cotu).

“I will grant a temporary stay until May 20, 2019. I direct that the applicant consolidates the case with another similar matter before Justice Hellen Wasilwa,” said Justice Maureen Onyango.

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Consequently, the Federation of Kenyan Employers has disapproved a Gazette notice by the Principal Secretary Housing and Urban Development Charles Hinga requiring employer to deduct 1.5% of an employee’s salary towards the Housing Fund by the 9th of every month terming it ‘unlawful’.

“The Federation of Kenya Employers (FKE) were in Court on the April 8, 2019 where they obtained an extension of the court orders suspending the implementation of the levy up to the 20th of May 2019 when the case will come up again for mention and further directions,” reads the statement shared on FKE’s Facebook page.